When a board of directors authorizes a share repurchase program, it typically states either the number of shares the company is interested in buying back or a dollar amount it will spend
on its stock buyback.
FPI joined the rally, where ordinary tax payers, elected officials, community organizations and labor unions called for a 0.5 % New York State tax
on stock buyback trades, which would mean corporations using their federal tax cuts simply to benefit their shareholders would have to pay a small New York State tax on... (read more)
-- if they — you just use this money
on a stock buyback to buy their stock, they're going to raise the price of the stock.
When a board of directors authorizes a share repurchase program, it typically states either the number of shares the company is interested in buying back or a dollar amount it will spend
on its stock buyback.
The math
on stock buybacks is pretty simple: by repurchasing your own company's stock in the market you reduce the number of shares outstanding, thereby increasing your earnings per share by cutting your denominator (earnings per share is calculated by dividing income by shares outstanding).
He spent $ 6 billion
on stock buybacks to reward investors and prop up the share price.
Since the financial crisis, several trends have kept it in check, including a surge in business models which are less asset heavy, a shift in focus toward consumer - facing technologies, and passive investing strategies that reward companies for spending free cash
on stock buybacks rather than capital goods.
And also explained to me — you wrote to me saying 91 percent of the S&P 500 earnings are spent
on stock buybacks and dividends.
A coalition of groups this week is pushing for the implementation of a 0.5 percent tax
on stock buybacks in the state budget they say will bring New York an additional $ 2 billion.
The net payout yield goal for the strategy is 8 %, defined by the amount a company spends
on stock buybacks and dividends as a percentage of its stock price (adjusted for the amount a company receives for issuing new stock).
If corporations are getting closer to retrenchment — voluntary or involuntary deleveraging — there will be less money spent
on stock buybacks.
The company has spent over 100bln
on stock buybacks over the past decade, yet the dividends are small...
Not exact matches
On the other end of the spectrum, Apple Inc shares rose 4.4 percent after the company late Tuesday posted resilient iPhone sales in the face of waning global demand and promised $ 100 billion in additional
stock buybacks.
In an interview, Rendle told Fortune the company is looking for its next big deal, even as he said VF would focus
on building up its online and international businesses to spur growth, and touted a $ 5 billion share
buyback program to boost the
stock.
Icahn also said in the interview that he thinks one reason this is going
on is that executives are paid with
stock, and they think
buybacks will boost the value of that
stock.
Buybacks, said Aguilar, are done because that's the way companies think they can get the best return
on their investment, so with a more volatile
stock market and harder access to credit, spending cash
on long - term growth becomes the best option.
«There's no question that by far corporate
buyback have been the source of most of the buying in the
stock market,» Sonders told Business Insider
on Wednesday.
The company also approved a new $ 40 billion share
buyback program, reaffirming it's
on track to complete its current $ 40 billion
stock repurchase program by December 31.
He announced an aggressive
stock buyback a few months after opposing such a move, provided more details
on the 40/20/10 plan first mentioned in June, and recentralized innovation efforts under one executive.
Apple
on Tuesday announced a plan to return $ 100 billion to shareholders in a massive
stock buyback, confirming recent optimism around tax reform.
«
On the capital front, we're also in the middle of a (
stock)
buyback program that's going at an accelerated pace.
As sellers rotated out of UnitedHealth Group's
stock and into shares of Centene
on Wednesday after the latter announced its own
buyback, Cramer spotted an opportunity in UnitedHealth.
Buoyed by an unquenchable thirst for short - term
stock gains, traders and activist investors are mounting pressure
on a wide array of companies to cut research and capital expenditures in order to increase
stock buybacks and thus boost
stock prices.
May 1 - Apple Inc
on Tuesday reported resilient iPhone sales in the face of waning global demand and promised $ 100 billion in additional
stock buybacks, reassuring investors that its decade - old smartphone invention had life in it yet.
Analysts typically measure whether companies beat or missed their earnings based
on earnings per share, which can be manipulated by corporate
stock buybacks.
Since 2011, Fortuna has calculated a «
buyback ROI,» or return
on investment, which tracks post-
buyback stock prices and other data points to measure the effectiveness of corporate repurchases.
With
stocks in general still trading so high, investors are best off ignoring the short - term hype around
buyback announcements and instead taking a closer look at companies
on repurchasing binges to see if their share prices have more room to run.
Examples of such projects providing marginal benefits are: improving financial reporting systems through better information technology, minor tweaks to supply chain logistics, cutting back
on marketing or increasing low - cost advertising (like social media), «rationalization» of head count, holding average wages as low as possible, squeezing suppliers a little bit, not repatriating earnings to stave off taxation, refinancing rather than retiring debts, and the share
buyback that is insensitive to a company's current
stock price.
Companies in the S&P 500 are
on track to give investors more than $ 1 trillion in
stock buybacks and dividend increases this year, according to Howard Silverblatt, a senior analyst at S&P Dow...
The surge came
on the heels of the company's announcement that it approved a $ 2.5 billion
stock buyback program.
Apple's
stock buyback, announced as the company released its quarterly earnings
on Tuesday, fits into the trend of companies using the windfall from the new tax law to reward shareholders.
During their earnings call
on May 1st, Apple announced a $ 100B
stock buyback program plus a 16 % dividend increase payable in May.
Brookfield Asset Management declared that its board has authorized a
stock buyback plan
on Sunday, June 4th 2017, which allows the company to repurchase 82,960,000 shares, according to EventVestor.
The cost of
buybacks don't just come from the losses
on overpriced
stock, they also come from the missed opportunities to invest in growth and innovation.
Companies have money
on hand to invest in their operations, but they're mostly choosing to hold that cash
on the balance sheet or
buyback stock.
Aflac also announced a 5.4 % increase in their quarterly dividend to $ 0.39 a share and increased the size of their
buyback plan from $ 1 billion to $ 1.2 billion which I like since it shows management is being smart when it comes to buying back
stock on cheap valuations.
It wasn't that Apple guided higher for the next quarter, surpassing future expectations, but rather, offered up another $ 100 BILLION dollar
stock buyback on top of all the previous $ Billions allocated prior.
Some analysts predict the company could send as much as $ 180 billion to investors through
stock buybacks and dividend increases over the next two and a half years,
on top of the $ 300 billion it has already authorized.
Since then, the
stock has risen by 27 %
on the back of strong earnings and a $ 10 million
buyback announcement.
A
stock buyback is basically a secondary offering in reverse — instead of selling new shares of
stock to the public to put more cash
on the corporate balance sheet, a cash - rich company expends some of its own funds
on buying shares of
stock from the public.
The benefits of tax reform are just being felt, U.S. companies are sitting
on a record amount of cash and dividends are a popular use for that money, along with merger and acquisition activity and
stock buybacks.
If instead we use total expenditures
on dividends plus net
stock buyback cash plus change in total debt divided by market capitalization, we don't need to worry about changes in share count due to
stock splits.
Perhaps more interesting is how the market is starting to treat the
stocks of companies that spend more
on capital expenditures rather than
buybacks and dividends.
Multi-billion dollar
stock buybacks are great for minting billionaire CEOs
on Wall Street whose bonuses and
stock options are tied to profits and share price performance.
I agree that
buybacks at a high valuation are likely foolish, but increasing the attractiveness of the
stock to those focused
on the immediate payback would seem to make acquiring more shares at a good price more difficult.
Despite the strong start, concern remains among retail investors and portfolio managers that chief financial officers remain too fixated
on returning cash to shareholders through
stock buybacks and dividends.
• Lies, Damn Lies and LIBOR (London Banker) •
Stock Buybacks that Wasted Investor Money (CNBC) • Short Sales
on NYSE Top 2011 Peak as September Bets Lost 21 % (Bloomberg) • WTF?
That's
on top of the $ 6 billion in
stock buybacks it announced in Nov. 2016.
Keeping to that promise, Qualcomm raised its dividend by 14 %
on Monday and announced a new $ 10 billion
stock buyback.
Thought of another way, the $ 22.8 billion Apple spent
on its first quarter
stock buyback is enough buy any of 275 companies in the Standard & Poor's 500 -
stock index.